India: Inflation falls to six-month low in March and decrease in wholesale prices stabilizes
April 14, 2016
Consumer prices recorded flat growth in March over the previous month, which contrasted February’s 0.24% drop. The result was largely driven by a slight rise in prices for tobacco and intoxicants, which was offset by lower prices for fuel and light. Inflation eased in March, coming in at 4.8%, which represented a six-month low (February: 5.3%). March’s result came in below market analysts’ expectations of 5.0% inflation.
The wholesale price index (WPI) in March rose 0.34% over the previous month, which contrasted February’s 0.97% fall. March’s reading reflected rising prices for manufactured goods as well as for fuel and power products. On an annual basis, wholesale prices fell 0.9% in March, which mirrored February’s result. However, the trend pointed up and annual average WPI inflation rose from minus 2.6% to minus 2.5%.